The Theory of Networks

The new network math discussed in “Linked” and “Nexus” will ultimately do for network innovation. Scientists and innovators will look for “hidden networks” within complex systems to figure out whether those networks are being overly relied upon or foolishly underexploited. These analyses will transform how organizations manage their networks to manage value. Indeed, individuals and institutions may be able to create just-in-time network activity to increase reliability and exploit opportunity, much as Black-Merton-Scholes equations empowered innovative traders to create just-in-time trading of options and derivatives to better hedge or speculate. In manufacturing, supply chains represent nothing if not an organizational opportunity to identify hidden networks of risk and reward.